2/15 Net 45 Translates as 2 Percent of the Balance

question 296

True/False

2/15 net 45 translates as 2 percent of the balance is due in 15 days; the remaining balance is due in 45 days.

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Definitions:

Investment Certificates

Financial products issued by banks that offer a fixed interest rate over a specified term.

College

An educational institution or establishment, primarily providing tertiary education and granting academic degrees in various subjects.

Compounded Quarterly

The calculation of interest on the principal amount and any accumulated interest four times a year.

Compounded Semi-annually

Interest calculation method that adds interest to the principal sum twice a year, resulting in interest accumulation on interest already accrued.